tv [untitled] October 3, 2014 5:00am-5:31am PDT
maritime and echo industrial improvement plan. >> good evening, commissioners. my name is kanya dorlan and i am a planner with the port and planning development division, today i am here with (inaudible) and the maritime division and brad benson the special project manager who will present with me an overview of the planning efforts in the southern water front. which we are adjacent to today, and it will provide information on the existing plans and uses and proposed developments for the 80 and 96 area and this presentation is part of an ongoing conversation with the port commission is report advicely committee, and both times, to assess the opportunity for activity in the area.
the existing plans, which are the , bay, conservation, and metropolitan and supporting the water use plan and the blue, green way and planning and designed guidelines, identifies the piers 80, as a maritime area. covers 190 acres and has (inaudible) it is located along the truck routes and has access. it has been involved in the mrabing and marketing and site condition study to determine the viable uses for the remaining land and under utilized areas. for pier 80 to 96.
in october of 2008, port staff with the area stake holders, presented for the preferred uses for the under utilized areas for the port commission and just to identify, on this map, (inaudible) this area is (inaudible) not fully occupied. and so back to presentations. so the area studies and particular holders, and port staff recommended additional industrial maritime activity at piers 80 and 96 and approvals and investigating the badge plant development. >> before displaying a proposed opportunities and improvements
for the area, we want to provide some context on the existing area operations. and there are existing maritime and industrile tenants in piers area and on the screen the existing tenants generate approximately 629 jobs and approximately 8.6 million in annual rent revenue to the port. and additionally, signed leases with central resulted in 11 million dollars and new development at their leased areas. and there are some vacancies as mentioned and the occupancy between the piers 92, 96 is roughly 65 percent, leaving approximately 40 acres, on the back lines area available for leasing. for piers 92, to 96 are engaged
in recycling and up cycling and thus, the areas can be (inaudible) industrial park, the concept of the park consists of (inaudible) heating and industrial uses to enable the product exchange up from the resources, and corporate green design and green technology and on site, and resource recovery and (inaudible) local residents and reduced industrial and environmental impacts. and and this product exchange, is the pro-ducks activity on site. and in the span and by vessel at pier 94 and which is used by the central to produce the concrete. and the center harvests the rain water on the site in the concrete production, and manage sf water run off through the swil and this communication also reduces trips within any city to make concrete.
bi product and so the sustainable (inaudible) and which are the relatively new tenant at the port and 352 recycled concrete from the area demolition projects. it also uses the recycled aggregate and sand produced, to produce non-structural concrete, for sidewalks, curbs and gutters. i will now turn the presentation over to jim (inaudible) to further explain what piers 80 opportunity and activities. >> thank you. and good afternoon, commissioners katz and adams and brandon. murphy and woo ho. and i am jim malony, and i am from the port of san francisco and i am tasked with developing and helping to develop the target business at the port.
and i will be here for a meeting as well and i am familiar with the area and i am grateful that we are having the first off site here. and i want to talk to you today, about current activities, and activities at pier 80 and 96 and as you are aware, it is the port's, and it is the bay, only dedicated fall for the project facility. we will be going to the great america conference in houston to have a display baolgt and a
joined recessed customer reception, and we are out there trying to and we have four, claims that are so operatable and can help to augment the trains that on the ships that come in to discharge the cargo and we have four deep water burrs and 40 feet of water which is a lot of water for the ships that come in, and it is a good facility, to carry, and it is calling it. >> and another common product
that we bring are the steel coils and they are located inside of shed a and most go straight into the storage and waiting for the trucks to come and pick them up because they are sensitive cargo and, most of the steel coils go into making things, or semi, finished product and make things like auto parts and cans for the canning industry in the central valley and the things like the garage doors and gutters for housing and etc.. and last year, we had two ships in, and that brought project cargo in and that is another large, type of commodity that we see at pier 80 and this picture shows a piece of one of the central subway tunnel boring machines that came in on
two separate vessels last year to support the project and which now has been successful and they have dug the tunnels and other projects cargo, items that we bring in, and we brought in electrical, or electricity producing like turbines and yachts and boats. and brewery tanks and things like that. and a lot of, project cars that are really too big to go and so this was, a piece of cargo that came in for tesla recently on a ship in may, and so this production press, and they will be introducing in the coming months and i am sure that you will be reading about this, and actually the used piece of equipment, that they purchased from toyota and japan, they were also, expecting additional
similar type of equipment from germany and italy. and we are working with tesla and a number of initiatives as well and they produce the cars, using aluminum coils, and actually stamp their auto parts right there, and their plants in freemont and so we are taublging about that and we are talking also about possibly exporting the finished product and the finished vehicles to asia and possibly also europe, and we are looking at bringing in the bulk product that will supply the batteries for the giga factory that they just announced that they will be building, outside of reno, nevada and we think that will be a great opportunity for the port and other items that we are looking at also include the products that come in the specialized 20 foot containers that will give the port in the holes and vessel and we are looking at bags, and of the products like the lime that will be used in various uses and other parts of the world.
we are schedule to come back to the port commission. >> yes? >> i am hearing a lot about what is coming in, how much is going out? >> so right now, pier 80, really is almost 100 percent focused on imports and so we are trying to change that and trying to find the ex-ports that we can attract as well, like the tesla automobiles and like the specialized container bulk products like... >> containers are coming in and leaving empty? >> yeah. >> we got to change that. >> and yeah, we are working on that, and in fact, the bagged line of the product that we talked to one of the carriers about carrying and going down to south america where the ships are going to from, a lot of the ships are being repositioned from here. and so we are working on that and we will be coming back to the commission and schedule to
come back in december in conjunction with the metro ports and to give a more detailed presentation on our or how initiative and our opportunities that we are fulfilling in pier 80. >> next i would like to talk to you about our terminal marine terminal down at 96 and we have been actively marketing that terminal to form a container facility, and it has been utilized for interim uses, and this give you a little bit of history about the bulk industry that the port has been able to track and that conya alluded to, in 2001, the port developed an import business in partnership with hansen aggregate to bring it in to the port to be used in the concrete plants in the local area and also the opportunities turned out to be very successful and the port is now, bringing in
about million and a half to two million tons of bulk product a year and both in the pier 94 and 92, to support the (inaudible) site and so what we like to do is replicate that success, next door to pier 96 and some of you are aware that commissioner brannan you were here in 2008 when we put the property out to bid, at the time the market was starting to soften and we received one proposal and that was build another break wall, which the port rejected since we have a facility on 80. and since that time, start ng 2010, the market has started to improve and we are getting a lot of inquiries from exporters that would like to use that facility, in particular, for iron ore and we think that it is a good fit for iron ore and in part because a lot of it will be coming out of nevada
and utah and which are good proximity to northern california and ports of san francisco. iron ore is inert and it is not toxic and it is not something that is going to pollute the environment and in fact it is a naturally occurring mineral that gets washed down through a water ways and if you go out to the ocean beach, the black sand you see on the beach is iron ore and so, it is, and it is very you know, non-toxic and also, iron ore is heavy and it needs a deep water which the support of san francisco can offer, we have 40 feet of water which is adequate for iron ore shippers. they will bring it in by train and utilizing any specific rail road and they will go directly from the trains and unloaded to the port and loaded into the
vessels at pier 96 and right now, we are we have been working since 2010, and we have been working closely with the union pacific rail road to partner on them to committing to bring the product into the port and we are close to getting a written commitment to that and from them to bring in 6 trains a week of iron ore. and we have recently asked the engineering firm to do a geotechnical and engineering analysis of the pier 96 area. to, what you know, see if a facility can be built and exactly how it will be built and they will be coming back to us in the coming weeks with the feasibility and a 10 percent design of the bulk facility and i will talk about that in a moment. talk more about the opportunity and this is actually a piece of iron ore that we brought from the mine site in nevada that we
are actively pursuing for the opportunity and again, the product will be brought in by rail in long trains. and the idea will be to bring it in, convey it, using covered conveyor systems, and store it in the covered storage shed at pier 96 and load it on to the ships, with a covered ship loader system that will be built, down at pier 96. this slide show is some of the rail improvements that we will be required to facilitate, both for the export facility that handle the iron ore and she pointed out that the pier 96 and we plan to add on to the rail yard and we will add five additional parallel track to the current rail yard and create a loop, and they can
come in and loop and off load their product and get stored back into the rile yard and back on ward to the mine sites. for reloading and that will effectively triple the amount of track that we have in that area. and we will partner with the san francisco rail road and our current tenant and eric smith is in the audience, and with the san francisco bay rile rail road and we have partners with them to bring in the trains and unload them and send them out to the mine site. and the union pacific rail road is a good partner in the lighting of a good commitment letter from them that they are willing to be support this facility. and what they have told us is a number of requirements that we need to adhere to. in order for them to feel
comfortable, committing to operationally the first is one rebuilding the (inaudible) lead and i here that the lead, leads the main line just south of this and just north of this facility, and as you are aware, the port received, $3 million grant to do just that, to rebuild that track and we are working to except to have that project done late next year. also said that they will use us to augment and add on to the rail line and it will support the pro-yekt and confirm that it will indeed facilitate the managing of the facility or serving the facility to that effect. and we contemplate, that it will move about 3 trains of iron ore a week and be able to
double that capacity, and starting out at one to one and a half million tons a year and effectively doubling that in the future. and this facility that creates the new jobs, and including the (inaudible) jobs, and create a lot of new revenue to the port and we are estimating upwards of 2.7 million dollars a year, to start, additional new port revenue. and as a mentioned this engineering study is due back to the port in the coming weeks. and we would like to that i can that study and with the commission's approval, request for a proposals and then take the property out to bit and issue this rfp as early as january of this coming year. and again, we would appreciate your input on the project, and your guidance. and with that i would like to hand it over to brad benson to talk about the back land and our batch fund opportunities.
>> thank you jim, good afternoon, commissioners, we have got two other ideas that we want to share in this presentation, through the southern walter front area. one is not a completely new idea, this was partially improved by someone building a concrete batching facility, and using a similar business model and taking range of